Children's minister Edward Timpson said the decision follows a review of current and likely future need for places in secure children's homes launched last October.
"On the basis of the evidence gathered, the government is persuaded that the commissioning of welfare placements in secure children's homes would be improved by greater co-ordination at national level," Timpson said in a letter outlining the decision.
The Department for Education will work alongside the Association of Directors of Children's Services (ADCS) and the Local Government Association to explore how national commissioning would work in practice, and to identify the next steps, with the work scheduled for completion by summer.
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